The United Arab Emirates is undoubtedly making astonishing advancements in all industries. The UAE is known as a remarkable business hub offering profitable and reliable options to investors and entrepreneurs globally.
Similarly, the United Arab Emirates is focusing on leading its way to become the best cryptocurrency platform in the world. Hands down, the UAE has made a significant impact globally because of its revolutionized approach to blockchain, which is one of the cryptocurrencies. With the emerging technology, UAE is making huge strides and progress. One of the innovations can be seen as the UAE is offering Cryptocurrency Management License.
For this purpose, the Dubai Multi Commodities Centre Free Zone (DMCC) has recently initiated a Crypto Centre that will support and assist the crypto-based companies in the free zones of UAE. It is found that the crypto companies will need to have a cryptocurrency sector with their unique needs that the Government of UAE will meet with its new criteria. After all, many entrepreneurs have been prompted with this recent innovation to launch their businesses in UAE with a significant increase.
As an overview, cryptocurrency is a global digital currency with no physical existence. It is a decentralized currency as the issuance of the currency does not take place centrally, but is generated through a mining process. The mining process includes having to successfully solve a puzzle where a new block is offered as the reward.
The Blockchain is a technology and many cryptocurrencies are securely transacted on this technological platform. The most famous and trendy cryptocurrency in the UAE right now is Bitcoin, which is the representation of exponential growth and massive investment. Therefore, in this write-up, we have discussed that the UAE has announced to regulate cryptocurrencies and NFTs with its new virtual asset law.
The Cryptocurrency Business Plan Initialization and Implementation in the UAE
The new Dubai virtual asset regulation law has been set up by the Department of Economic Development (DED). The department also issues the license for cryptocurrency in Dubai, UAE while the regulatory authority covers all the Dubai virtual assets ranging from operating and managing companies and their services. The department also has an entire spectrum of services and VA activities to take care of. With cryptocurrency, the exchange will happen between the virtual assets of the companies and currencies.
However, it’s important to note that the license is only issued when the business plan is offered with the proposal and documents. There are various business segments to choose from, such as, Dubai virtual asset custody and management, VARA authorization, virtual asset portfolio, and trading virtual assets with tokens. In addition, the UAE has been very swift in accepting and adopting to the digitisation of assets and decentralized digital currency while identifying the potential risk associated with it.
Furthermore, the below-mentioned are the key points required in the cryptocurrency business plan of UAE for investors with a business initialization approach while keeping in mind the virtual asset law:
Cryptocurrency Business Idea
When applying for a company set-up or cryptocurrency license with the UAE government, the business plan for around 3 to 6 months, both short and long-term should be mentioned. The business plan must include the basic details of the project such as the objective and it’s general operations throughout the span of 3 to 6 months.
Cryptocurrency Financial Proposal
The financial proposal must add the details as to how the entire financing of the project is planned, how much capital is raised, how much profit is expected, how the profit will be utilized or reinvested, etc. The purpose of the financial proposal is to know how the overall funds with be managed according to the business activity. Moreover, if the funding strategy includes business investors, then the information regarding the investors must also be mentioned in the financial proposal. However, if the project is based on self-financing, then bank statements and other documents must be provided and fulfilled.
Cryptocurrency Concept
Besides the business and financial proposal, the concept plays a huge role in applying for the cryptocurrency management license in UAE. The concept must depict the kind of cryptocurrency you are interested in, whether you are willing in the trading procedure or the mining one. Furthermore, the concept of what you think the final product will be is important to mention because the criteria of which one you will be selecting depends on the conceptualization, idea, and objective of the plan.
Cryptocurrency Business Models
The business model requires you to offer a strategy through which you plan to execute the business plan. The business model is a more detailed plan along with techniques and strategies of implementation. Moreover, the business model must also have the details of competitors and rivals in the cryptocurrency sector of Dubai.
Understanding The Cryptocurrency License in UAE
To be able to conduct a legal and authorized business in Dubai or any other state of UAE, the requirement of the license is a must. Corporations usually require a general trade license. In addition, someone looking to initiate a crypto-based company in UAE will require a different license type as it falls under the commercial business category. Thus, to obtain a cryptocurrency management license, one must also obtain a commercial license which comes with two-in-one permissibility of trading as well. After all, cryptocurrency is directly related to the trading of crypto and Bitcoins. A commercial license in this regard is issued. There are two ways this license can be obtained conveniently.
Cryptocurrency License Online Registration
The online registration process requires you to fulfill and complete the license paperwork online along with document attestation. The registration request is then submitted on the online forum.
Cryptocurrency Offline Registration
The offline registration process requires you to visit the office for document attestation, filling, licensing paperwork to be then submitted then and there for the application process to begin.
Accelerate Ideas can help you with both online and offline registration and application processes.
Requirements for Obtaining Cryptocurrency Management License In Dubai, UAE
To obtain a cryptocurrency license to become a company that can regulate cryptocurrencies and NFTs, the process is easy but detailed and time-consuming.
- Completion of the online/offline registration process.
- Submitting the application to the registered corporates of the UAE crypto-sector
- The documents of the company registration, shareholders, managers, the owner must be provided.
- The official documents of the Dubai Multi Commodities Centre free zone (CMCC) must be provided.
- Submit the application form fee and attach the receipt in future processes.
Following the above-mentioned requirements, the cryptocurrency license will be received within a few weeks with approval. However, some more requirements include:
- Clean records are necessary to have an absolute and seamless process.
- The information of the crypto and company must be secured in a crypto wallet.
- Requirement of valid passport copies of all stakeholders, investors, business owners, and managers participating in the business activity
- An approved DED commercial license has to be provided with documentation
- The capital resources, operational assets, and bank statements for 6 months are needed to be disclosed to the UAE authorities
- The crypto assets must be incorporated with the financial free zone department of the UAE
Receive Professional and Business Consultancy with Accelerate Ideas
The team of Accelerate Ideas is the authorized partner of International Free Zone Authority Dubai and has high-end experience in innovative technologies and cryptocurrency management. The services provided by us are competent with transparency in all procedures. We are the professionals dealing with business setup in the UAE for decades.
Please feel free to get more information with us on cryptocurrency management license, virtual asset law, VARA authorization, VA activities, documents requirements, and attestation.
Casey Lucero